Cramer issues warning on IPOs: Be careful

Michael DeSimone, Borderfree CEO, discusses the growth in international e-commerce, and how the JOBS Act helped his business go public.

As Wall Street was buzzing about expectations for several initial public offerings on Friday, Jim Cramer issued a warning to potential investors: Be careful and don't be afraid to take a profit.

A10 Networks, Amber Road and TPG Specialty Lending are debuting on the New York Stock Exchange while Versartis and Borderfree are launching on the Nasdaq. Some of these companies might be worth investing in, but Cramer thinks the day's IPO market largely feels frothy and without much skepticism.

"We're willing to give a pass to just about every company that's becoming public right now, and I'm just worried about that," Cramer said on "Squawk on the Street." "Everything that calls itself 'cloud' right now or 'big data' is flying on the IPO market' and I'm just saying that doesn't last forever."

If investors don't take a profit on these IPOs, they could get burned later on when institutional investors decide to sell, he added.

Cramer warned that some of these IPOs may be sliver deals, when only a fraction of the total float was offered for sale and most of it was sold to large institutions. Those institutions will then purchase the rest of their desired position after the stock becomes public, thereby sending the stock higher. The stock will only continue to climb as retail investors enter the market, benefiting the institutions, which will then sell the stock once their lock-up period expires.

"Don't get too complacent in these IPOs," Cramer said. "If you got some at home, don't feel that you have to hold on to it because the insiders, most likely, will not want to hold on to it when the lockups expire."

Performance of Friday's IPOs was mixed, but most stocks went higher.

After pricing its 7.39 million share offering at $13 a share, cloud computing services provider Amber Road opened at at $17.50 a share.

Shares of TPG Specialty Lending, the business development company of private-equity firm TPG Capital, rose about 3 percent in their debut, valuing the company at about $852 million. TPG raised about $112 million after its IPO of 7 million shares was priced at $16 per share, the low end of the expected range.

(Read more:Shares of TPG Specialty Lending rise in debut)

Borderfree debuted on the Nasdaq at $16 a share and the stock continued to climb in midday trading.

A10 was the sole IPO to fall after its debut. It opened at $16 a share but fell on news that the company had to place a last minute amended S-1 filing with the Securities and Exchange Commission, then rebounded.